Disputesinternational:
two short sections of boundary with Uruguay are in disputeArroio
Invernada (Arroyo de la Invernada) area of the Rio Quarai (Rio Cuareim) and
the islands at the confluence of the Rio Quarai and the Uruguay River

Illicit drugs:
limited illicit producer of cannabis, minor coca cultivation in the Amazon
region, mostly used for domestic consumption; government has a large-scale
eradication program to control cannabis; important transshipment country
for Bolivian, Colombian, and Peruvian cocaine headed for the US and Europe;
increasingly used by traffickers as a way station for narcotics air
transshipments between Peru and Colombia